Entering 2026, the integration drama in the gambling industry not only hasn't ended, but it may face even more intense chapters. Looking back at 2025, several "earthquake-level" acquisitions completely reshaped the gaming landscape, an unexpected trend is that traditional lottery groups are quietly becoming the long-term winners of all online opportunities. Regulatory changes such as tax increases are squeezing the living space of small and medium players, pushing them into the arms of industry giants. At the same time, companies are turning to markets with lower volatility through mergers and acquisitions, and localization efforts are visible everywhere. So, how will this wave of mergers and acquisitions evolve in 2026? PASA's official website has compiled views from M&A advisors such as Partis and Tekkorp Capital, as well as industry executives, to sort out the key points for you.
Regulatory tightening, becoming an "accelerator" for acquisitions
Last year, changes in the regulatory environment, especially the increased tax burden, directly led to industry contraction. Many local small operators found it difficult to survive independently under new regulations, creating excellent acquisition opportunities for financially strong large companies. Brendan Bussmann, managing partner at B Global, pointed out that strong operators could take advantage of this opportunity to acquire those troubled assets, thereby maximizing their own advantages. This "big fish eating small fish" script is expected to be frequently staged in the continuously high-pressure regulatory environment of 2026. Mergers and acquisitions are not only a means of expansion but have also become a key strategy for survival under strict rules.
Technological innovation, yet facing the awkwardness of "gray areas"
Innovation should bring new growth points and acquisition opportunities, but in reality, it faces challenges. Especially in the US market, many so-called "innovative" companies operate in gray or even black markets, which makes mainstream compliant operators "keep their distance" from them, also making investments and acquisitions around them extremely sensitive. Bussmann frankly stated that the nature of these companies makes them "untouchable" assets. This means that in 2026, technology-driven mergers and acquisitions will pay more attention to the compliance and licensing qualifications of target companies, and the pure "technology halo" may fade in the face of strict regulation.
Traditional lottery groups, how to counterattack to become "all-rounders"?
The most surprising point in the 2025 acquisition wave was that traditional lottery groups through acquisitions, successfully positioned themselves as comprehensive winners across all online domains. With stable cash flows and deep regulatory experience, they strategically acquired to fill gaps in areas such as sports betting and online casinos. This "old tree blooms anew" model, shows another path of industry resource integration: not that technology newcomers disrupt the tradition, but traditional giants absorb innovation through capital. Entering 2026, these "industry veterans" who have completed preliminary layouts may use their integration advantages to further consolidate market positions, or even initiate new acquisitions.
In summary, the gambling industry's mergers and acquisitions in 2026 will no longer be a simple competition of scale. It will be a complex game of dancing under regulatory shackles, seeking technological innovation within compliance red lines, and redefining the rules of the game by traditional forces. For investors and practitioners, understanding these deep logics may be more important than chasing transaction amounts themselves.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel: https://t.me/pasa_news
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PASA official website: https://www.pasa.news
